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Sports face the big chill

by The Denver Post


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From pros to colleges and beyond, the chilling economic climate is affecting sports in Colorado and across the nation.

The Denver Post's Patrick Saunders provides snapshots of the impact that tough times are having on leagues and teams: Avalanche,

NHL

As many as five or six franchises are facing financial trouble, led by the Phoenix Coyotes, who reportedly will lose up to $35 million this season. NHL revenue is projected at around $2.5 billion this season, about the same as last season. The Avalanche are averaging 16,007 fans, 21st in the league.

The defending champion Red Wings are offering $9 seats. The Avs are offering several ticket packages, including a "four- pack" for $89, which includes a signed Paul Stastny puck.

The NHL locks in most of its sponsorship, ticket and TV revenue early in the season so the true impact of the slumping economy probably won't be reflected until next season.

"Those are real dollars flying out the door; it's not hypothetical."

- Ottawa Senators owner Eugene Melnyk, to The Canadian Press Broncos, NFL

The Broncos have sold out 316 consecutive home games and have 25,000 fans on a waiting list for season tickets. Overall, the economic health of the NFL is good, but there are trouble signs. The Broncos dismissed eight employees earlier this year in a budget cut, and the NFL recently laid off 10 percent of its workforce.

Most NFL teams still play to sold-out stadiums. According to Chicago-based Team Marketing Report, the cost of taking a family of four to an NFL game rose 7.1 percent this year to $396.36.

The NFL gets approximately 60 percent of its revenue from TV contracts that don't expire until 2011, so it is well-poised to withstand the economic downturn.

"I would like to be able to report that we are immune to the troubles around us, but we are not."

- NFL commissioner Roger Goodell Crush

AFL

The Arena Football League canceled its 2009 season for all 16 teams last week. It hopes to return to play in 2010. Crush president John Elway rates the chances of resuming play at 50-50 but said the AFL can only return if a better business model is drafted to help out the league owners.

The Crush averaged 11,909 fans per game in 2008. Its high-water mark was 17,427 in 2003, its first season. The AFL, which began in 1987, averaged 12,957 fans per game last season.

League officials are working on "developing a long-term plan to improve its economic model." In the meantime, teams such as the Colorado Ice, an indoor team in Loveland, might benefit.

``The intention is for all 16 teams to come back for the 2010 season. The Crush ownership has a lot of money invested in this, and we don't want to see this go away.'' - Elway Colorado State

University

The Rams' athletic department is in a tight spot. The football team drew an average of just 21,008 fans this season, the worst turnout at Hughes Stadium since 1992. The Rams have a lean Division I athletic budget of $21.5 million and are struggling to attract fans for rebuilding men's and women's basketball programs.

While overall ticket sales are down, nearly 5,000 Rams fans traveled to Saturday's New Mexico Bowl in Albuquerque, in part because fans could drive to the game.

CSU is offering a wide variety of ticket plans. For instance, a "partial plan" for men's basketball costs $50 for general admission to five games, as well as a "premium" game.

"I'm getting great feedback from people who are at the (football) games, but as with anything, it's a process. It's going to take time."

- CSU AD Paul Kowalczyk University

of Colorado

Fielding a relatively young team, the Buffs drew just 5,963 fans at the Coors Events Center for a recent men's basketball game against rival Colorado State. However, athletic director Mike Bohn was heartened by recent end-of-the-year donations totaling about $1 million. But he calls current fundraising efforts "a mixed bag."

The Buffs, according to Bohn, are trying several new things to draw fans for basketball games, including a partnership with Fox Sports Net for $1 game nights as well as FSN T-shirt nights.

Bohn knows these are tough times. The CU athletic department is planning a round of town hall meetings in January and February to improve relations with fans and alumni.

"On the positive side of all this, it gives you a chance to forge better and close relationships with your partners and your fans."

- Bohn University of Denver

DU athletics are in good financial shape. Funding for two major capital projects - a $6.3 million, 2,000-seat soccer stadium and a 10,000-square-foot strength-and-conditioning complex - was secured in September. Attendance at men's Hockey remains consistently strong, though crowds are small for basketball.

In an effort to reach out to fans and sponsors, DU has been providing discount tickets, family-fun days and special thank- you packs for university sponsors.

DU has been aggressive at cost-cutting and often combines sporting events, such as a doubleheader of men's and women's basketball games, to trim expenses and help attract fans.

"We want people in the DU community to know, now more than ever, that we are sensitive to the economic times."

- Peg Bradley-Doppes, DU athletic director PGA

PGA Tour commissioner Tim Finchem recently said he is prepared for a "worst-case scenario" of possibly losing sponsors or watching broadcasting revenue drop. In addition, Buick recently dropped Tiger Woods as a spokesman after five years. Colorado, of course, lost The International in 2007, ending a 21-year run.

PGA players won't be hurting in 2009, even if the economy is. Purses, not including the four major tournaments, are projected at $222.9 million, up from $214.9 million in 2008.

About 15 PGA Tour events have sponsorship deals that expire after the 2010 season, but most are in place through 2012. PGA television contracts are secured through at least 2012.

"We have to continue to demonstrate that we're an excellent platform that ought to be a high priority for companies - even in a down cycle."

- Finchem Mammoth,

NLL

Although the Chicago Shamrox folded last week, reducing the National Lacrosse League to 12 teams, the Mammoth appears to be going strong, despite the recent loss of Frontier Airlines as a sponsor. With tickets ranging from $5 to $35, indoor lacrosse is family friendly, movie night out type experience.

Based on season-ticket sales and early projections, the Mammoth are expected to match last year's crowds when they averaged 17,400 per game at the Pepsi Center.

The Mammoth, part of Kroenke Sports, appears to have found a nice niche in Denver, but keeping it will be a challenge in this economy, even with low ticket prices.

``We give (families) an opportunity to get out and be entertained for less than going to the movies.'' - Steve Govett, president and general manager, Colorado Mammoth NASCAR

A slew of corporate sponsors are deserting NASCAR. The troubled Big Three U.S. automakers are also rethinking their racing commitments. Locally, Denver-based Furniture Row Racing, which competed in 32 of 36 races this past year, announced it will run a limited schedule next year.

Attendance dropped this past year, even at 10 venues that hosted the Chase for the Cup. As the economy slides, fans will have a hard time paying $92, on average, for a ticket.

Corporate sponsorship, the lifeblood of NASCAR, is drying up. That could make for a bumpy ride. Corporate sponsors put up more than $1.5 billion this year.

``Many of the major sponsors pulling back have been involved in our sport for decades. We're affected.'' - NASCAR chief executive Brian France, to the New York Times Drag racing

Bandimere Speedway in Morrison had a banner season in 2008 as it celebrated its 50th year, drawing large crowds not only for the NHRA Mopar Mile-High Nationals, but a variety of other races. The track's major sponsor for the past 20 years, Mopar (Chrysler and Dodge), recently signed a new three-year deal with Bandimere.

Overall, crowds were up by about 8 percent in 2008 and revenue climbed 11 percent, according to Speedway president John Bandimere Jr., who declined to release specific dollar amounts.

According to Bandimere, drag racing's future in Morrison looks bright, in large part because of a loyal fan base. "Drag racing is a hobby, not a vocation," he said.

"I think we are probably as recession-proof as anything out there. ? It's an escape for racers and the fans."

- Bandimere Nuggets, NBA

The league recently cut 9 percent of its domestic workers, about 80 jobs. The Nuggets, riding the return of local hero Chauncey Billups, are off to one of the best starts in franchise history, but attendance is 16,298, down from last year's average of 17,364. And Frontier Airlines recently quit as a sponsor.

In a concession to tough times, the Nuggets no longer require full, upfront payment for season tickets. They are also aggressively offering ticket specials on their website.

The NBA's $3.8 billion in revenue last season was a record, but Forbes magazine reports the average value of a franchise rose just 2 percent to $379 million, the smallest jump in 10 years.

"I think it's been proven that a good product draws sales and the Nuggets are a good product."

- Paul Andrews, executive vice president, Kroenke Sports Rapids,

MLS

In their second season at state-of-the-art Dick's Sporting Goods Park, the Rapids continued to draw well, although their per-game average of 13,659 fans was down from 14,794 in 2007. Though Major League Soccer is affected by tough economic times, its lean $2.5 million salary cap per team provides some protection.

The Rapids say they will not boost season-ticket prices for 2009. The team will offer a variety of ticket options. The cost for individual tickets will range from $12 to $32.

In 2009, rosters will be trimmed from 28 to 24 players, partly because of the economy. The summer of 2009 will provide a major test of the MLS's resiliency.

``We and our clubs are working hard to ensure that we can weather that storm, watching what we spend and how we spend it.'' - MLS commissioner Don Garber Rockies,

MLB

Boosted by their 2007 World Series appearance, the Rockies averaged 33,128 fans per game in 2008, their best showing at Coors Field since 2002. Though MLB attendance dropped 1.4 percent - to 78.6 million fans - baseball is flush with cash, having produced an estimated $6.5 billion in revenue this year.

Well aware of the tough economy, the Rockies joined several other teams this offseason and froze their season-ticket prices for 2009. The Rockies are working out ticket specials for 2009.

The Rockies face a tough task in retaining their estimated 18,000 season-ticket holders after a dismal 2008 performance, the trade of slugger Matt Holliday and the tough economy.

``We won't know where we are until the financials come in in February. But we are aware and sensitive to the economic environment.'' - Greg Feasel, Rockies senior vice president

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